Business
FG Pledges Bold Reforms To Revive, Sustain Economy
The Federal Government has promised to implement daring reforms that would revive and sustain economic growth and development in the country.
The Minister of Finance, Mrs Kemi Adeosun, made the promise in Abuja yesterday at the launch of the International Monetary Fund’s Regional Economic Outlook report on Sub-Saharan Africa.
According to IMF report, Nigeria’s real GDP is expected to grow at 0.8 per cent in 2017 and 1.9 per cent by 2018.
The reports further said inflation would remain elevated at 17.5 per cent and fiscal deficit to deteriorate to 5 per cent of GDP in 2017.
It also said GDP was projected to go from 19 per cent in 2016 to 20.1 per cent in 2017 and 20.4 per cent in 2018.
According to it, imports is expected to reduce from 13.8 per cent of GDP in 2017 to 12.4 per cent in 2018 and trade balance to improve by 1.5 per cent of GDP.
IMF, however, said the growth projection was hinged on adequate implementation of policy actions such as the Federal Government’s Economic Recovery and Growth Plan (ERGP).
Adeosun said that government was pursuing necessary reforms in areas of economic diversification, structural transformation, fiscal consolidation, public finance management and macro stability.
“Nigeria was one of the countries hardest hit by the commodity price decline.
“We have tried to mitigate these pressures through series of interventions, such as growing of the non-oil sector base through increased efficiency of tax and customs collections.
“We have also reduced cost of doing business, increased support for agriculture, infrastructure and manufacturing as well as reflating the economy through fiscal support to sub-nationals among several other measures.
“The security situation has improved considerably and investors’ confidence is on the increase. It is heartwarming to say that Nigeria will be out of recession soon,’’ she said.
Adeosun further said that the lessons derivable from the report was that, it was time sub-saharan countries take seriously the issue of exporting raw commodities with little or no value added.
She tasked all 45 sub-saharan countries to implement reforms that would boost local production, help create jobs and achieve sustainable growth.
Also, the Director, Monetary Policy Department, Central Bank of Nigeria, Mr Moses Tule, said a comprehensive and coordinated implementation of the Economic Recovery and Growth Plan were vital to the growth of the economy.
He, however advised against delayed policy response, uncoordinated implementation of ERGP and other economic reforms, in order not to hurt the growth projected for Nigeria in the Regional Economic Outlook report.
“Resolution of the Niger Delta crisis is expected to make headroom for higher oil exports, thus improving the fiscal space.
Also, the current forex reforms are expected to further improve, following improved terms of trade with higher oil exports and increased substitution with local production.
“The successful issuance of the last Eurobond is fast restoring confidence in our economy as evident in the recent Sovereign Bond Issuance offshore,’’ he said.
Also, the Director of the IMF’s African Department, Mr Abebe Selassie, said the delay in implementing much needed adjustment policies was responsible for creating uncertainty in economies.
He also said the overall weak outlook for the region partly reflected insufficient policy adjustment, holding back investments and generating risks, particularly in oil exporting countries like Angola and Nigeria.
Selassie, who cited the region’s modest growth recovery from 1.4 percent in 2016 to 2.6 percent in 2017, noted that this would barely put sub-Saharan Africa back on a path of rising per capita income.
“The uptick will be largely driven by one-off factor in the three largest countries; that is a recovery in oil production in Nigeria, higher public spending in Angola and fading of drought effects in South Africa.
“ But for other countries, the outlook remains shrouded in substantial uncertainties, including possible further appreciation of the U.S. dollar and tightening of global financing conditions, especially for countries where fundamentals have deteriorated.
“ On top of that, the outlook is further clouded by security issues that have contributed to an increase in food insecurity and even famine in parts of sub-Saharan Africa.
Selassie stressed the urgent need to ensure macroeconomic stability, complemented with structural reforms to support rebalancing and policies to strengthen social protection for the most vulnerable in the region.
He, however, reiterated that sub-Saharan Africa remained a region with tremendous potential for growth in the medium term, provided strong domestic policy measures were implemented.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
